<Page>
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act File Number 811-09597
LORD ABBETT LARGE-CAP GROWTH FUND
---------------------------------
(Exact name of registrant as specified in charter)
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Address of principal executive offices) (zip code)
Christina T. Simmons, Vice President & Assistant Secretary
90 Hudson Street, Jersey City, NJ 07302
---------------------------------------
(Name and address of agent for service)
Registrant's telephone number, including area code: (800) 201-6984
--------------
Date of fiscal year end: 7/31/2004
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Date of reporting period: 7/31/2004
---------
<Page>
ITEM 1: REPORT TO SHAREHOLDERS.
<Page>
[LORD ABBETT LOGO]
2004
ANNUAL
REPORT
LORD ABBETT
LARGE-CAP GROWTH FUND
FOR THE YEAR ENDED JULY 31, 2004
<Page>
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LORD ABBETT LARGE-CAP GROWTH FUND
ANNUAL REPORT
FOR THE FISCAL YEAR ENDED JULY 31, 2004
DEAR SHAREHOLDERS: We are pleased to provide you with this overview of the Lord
Abbett Large-Cap Growth Fund's (the Fund) strategies and performance for the
fiscal year ended July 31, 2004. On this and the following pages, we discuss the
major factors that influenced performance.
Thank you for investing in Lord Abbett Mutual Funds. We value the trust
that you place in us and look forward to serving your investment needs in the
years to come.
BEST REGARDS,
/s/ Robert S. Dow
ROBERT S. DOW
CHAIRMAN
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Q: WHAT WERE THE OVERALL MARKET CONDITIONS OF THE REPORTING PERIOD?
A: The U.S. economy continued to show signs of improvement early in the fiscal
year as domestic growth prospects and corporate profits improved. Further
evidence of an economic recovery sparked the equity markets. Specifically, gross
domestic product (GDP) numbers showed that the U.S. economy expanded by an
impressive 8.2% annualized rate in the third quarter of 2003. This was well
ahead of expectations. In addition, productivity data, an important gauge for
inflation, remained strong. However, while major indices advanced early in the
third quarter, concerns over the viability of future growth grew as the summer
of 2003 ended.
The employment report for October 2003 showed an increase of 126,000 jobs.
While the unemployment rate dropped to 5.6% in January of 2004, the data also
showed lower-than-expected job creation in December 2003 and January 2004. GDP
grew at a 4% annual pace in the fourth quarter of 2003 and, although this was
slightly below expectations, the data continued to support expectations for an
improving economy. Furthermore, in the face of a strengthening equity market,
debates over the direction of interest rates intensified.
The U.S. economy continued to strengthen in the first half of calendar
2004, largely due to strong consumer and capital spending. Corporate profits
rose, triggered by a rise in industrial production. In January and February,
inflation and short-term interest rates remained stable. However, somewhat
disappointing employment reports and higher energy prices weighed on consumer
sentiment. In March and April, the U.S. housing market remained strong and there
were improvements in durable goods spending. But, retail sales dropped 0.5% in
April after a 2% gain in March.
Beginning in April and continuing through July, unemployment stabilized.
1
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The Producer Price Index (PPI) rose 0.1% in July, seasonally adjusted, after a
decrease of 0.3% in June and a 0.8% rise in May. (The PPI measures wholesale
prices of goods, i.e. before they are sold through retailers. It is sometimes
used to predict movements in the Consumer Price Index, which is a measure of
retail prices and is commonly used as a measure of inflation.) Equity prices, as
measured by the S&P 500 Index, were roughly flat in April, May and June. On June
30, the Fed raised its fed funds rate from 1% to 1.25%, and stocks responded
positively to the widely expected Fed action. (The fed funds rate is the rate at
which banks lend to each other overnight.)
However, equity prices declined slightly in July, as investors continued to
respond to uncertainties surrounding future interest-rate hikes, the continued
war in Iraq, the upcoming presidential election and record-high energy prices.
Q: HOW DID THE FUND PERFORM OVER THE FISCAL YEAR ENDED JULY 31, 2004?
A: For the fiscal year ended July 31, 2004, the Fund returned 4.8%, reflecting
performance at the Net Asset Value (NAV) of Class A shares with all
distributions reinvested, compared with its benchmark, the Russell 1000(R)
Growth Index,(1) which returned 8.5% over the same period. Standardized Average
Annual Total Returns, which reflect performance at the maximum 5.75% sales
charge applicable to Class A share investments and include the reinvestment of
all distributions are 1 Year: -1.28%, and Since Inception (12/30/99): -17.88%.
PERFORMANCE DATA QUOTED REFLECT PAST PERFORMANCE AND ARE NO GUARANTEE OF FUTURE
RESULTS. CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE PERFORMANCE QUOTED.
THE INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT IN THE FUND WILL
FLUCTUATE SO THAT SHARES, ON ANY GIVEN DAY OR WHEN REDEEMED, MAY BE WORTH MORE
OR LESS THAN THEIR ORIGINAL COST. YOU CAN OBTAIN PERFORMANCE DATA CURRENT TO THE
MOST RECENT MONTH END BY CALLING LORD ABBETT AT 800-821-5129 OR REFERRING TO OUR
WEBSITE AT www.lordabbett.com.
Q: WHAT WERE THE MOST SIGNIFICANT FACTORS AFFECTING PERFORMANCE?
A: Stock selection and an overweight position in certain stocks within the
healthcare sector were the greatest detractor from performance relative to the
benchmark for the fiscal year ended July 31, 2004. Negative pre-announcements of
quarterly performance hurt a number of holdings within this sector. In addition,
one holding underperformed due to the need to increase its cash reserves in
light of pressures from litigation.
The Fund was also negatively impacted by stock selection in technology.
Overall, the Fund's weakest performing technology holdings suffered as the
result of a peak in the growth rate, a lack of
2
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end-market demand and concerns about the economic recovery because of high oil
prices. In addition, one holding performed poorly based on a negative
pre-announcement of quarterly performance.
The largest positive contributor to the Fund's relative performance was
stock selection within the consumer discretionary sector. The consumer
discretionary sector includes stocks in the consumer durables, apparel, media,
hotel and leisure industries. These stocks tend to move with the economy. Much
of the relative outperformance came from two internet stocks as investors
recognized the low penetration and, therefore, high growth potential of internet
companies in terms of advertising and e-commerce. Two other consumer
discretionary holdings performed very well based on their strong fundamentals.
The Fund also benefited from the sector called "other," which consists of
companies that are diversified conglomerates. The largest holding in this sector
was a strong performer because of a successful management change and
restructuring.
THE FUND'S PORTFOLIO IS ACTIVELY MANAGED AND, THEREFORE, ITS HOLDINGS AND
WEIGHTINGS OF A PARTICULAR ISSUER OR PARTICULAR SECTOR AS A PERCENTAGE OF
PORTFOLIO ASSETS ARE SUBJECT TO CHANGE. SECTORS MAY INCLUDE MANY INDUSTRIES.
THE PROSPECTUS CONTAINS IMPORTANT INFORMATION ABOUT THE FUND, INCLUDING THE
FUND'S INVESTMENT OBJECTIVES, RISKS, CHARGES AND ONGOING EXPENSES, THAT YOU
SHOULD CAREFULLY CONSIDER BEFORE INVESTING. TO OBTAIN A PROSPECTUS ON THIS FUND
OR ANY LORD ABBETT MUTUAL FUND, PLEASE CONTACT YOUR INVESTMENT PROFESSIONAL OR
LORD ABBETT DISTRIBUTOR LLC AT 800-874-3733 OR VISIT www.lordabbett.com. READ
THE PROSPECTUS CAREFULLY BEFORE INVESTING.
(1) The Russell 1000(R) Growth Index measures the performance of those Russell
1000 companies with higher price-to-book ratios and higher forecasted growth
values. Indices are unmanaged, do not reflect the deduction of fees or expenses
and are not available for direct investment.
IMPORTANT PERFORMANCE AND OTHER INFORMATION
The views of the Fund's management and the portfolio holdings described in this
report are as of July 31, 2004; these views and portfolio holdings may have
changed subsequent to this date and they do not guarantee the future performance
of the markets or the Fund. Information provided in this report should not be
considered a recommendation to purchase or sell securities.
A NOTE ABOUT RISK: See Notes to Financial Statements for a discussion of
investment risks. For a more detailed discussion of the risks associated with
the Fund, please see the Fund's Prospectus.
PERFORMANCE: Because of ongoing market volatility, Fund performance may be
subject to substantial fluctuation. Except where noted, comparative Fund
performance does not account for the deduction of sales charges and would be
different if sales charges were included. The Fund offers additional classes of
shares with distinct pricing options. For a full description of the differences
in pricing alternatives, please see the Fund's Prospectus.
MUTUAL FUNDS ARE NOT INSURED BY THE FDIC, ARE NOT DEPOSITS OR OTHER OBLIGATIONS
OF, OR GUARANTEED BY BANKS, AND ARE SUBJECT TO INVESTMENT RISKS INCLUDING
POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
3
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INVESTMENT COMPARISON
Below is a comparison of a $10,000 investment in Class A shares with the same
investment in the Russell 1000(R) Growth Index (the "Index"), assuming
reinvestment of all dividends and distributions. The performance of other
classes will be greater than or less than the performance shown in the graph
below due to different sales loads and expenses applicable to such classes. The
graph and performance table below do not reflect the deduction of taxes that a
shareholder would pay on Fund distributions or the redemption of Fund shares.
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS.
[CHART]
<Table>
<Caption>
THE FUND (CLASS A SHARES) THE FUND (CLASS A SHARES) RUSSELL 1000(R)
AT NET ASSET VALUE AT MAXIMUM OFFERING PRICE(1) GROWTH INDEX(2)
December 30, 1999 $ 10,000 $ 9,425 $ 10,000
Jul-2000 $ 9,814 $ 9,250 $ 9,989
2001 $ 5,892 $ 5,554 $ 6,487
2002 $ 3,742 $ 3,527 $ 4,622
2003 $ 4,105 $ 3,869 $ 5,160
2004 $ 4,350 $ 4,100 $ 5,599
</Table>
FISCAL YEAR-END 7/31
AVERAGE ANNUAL TOTAL RETURN AT MAXIMUM APPLICABLE
SALES CHARGE FOR THE PERIOD ENDED JULY 31, 2004
<Table>
<Caption>
1 YEAR LIFE OF CLASS
CLASS A(3) -1.28% -17.88%
CLASS B(4) -0.06% -17.72%
CLASS C(5) 3.94% -17.36%
CLASS P(6) 4.97% -16.69%
CLASS Y(7) 5.52% -16.92%
</Table>
(1) Reflects the deduction of the maximum initial sales charge of 5.75%.
(2) Performance of the unmanaged Index does not reflect transaction costs,
management fees or sales charges. The performance of the Index is not
necessarily representative of the Fund's performance. Performance shown for the
Index begins on December 31, 1999.
(3) The Class A shares were first offered on December 30, 1999. Total return,
which is the percentage change in net asset value, after deduction of the
maximum initial sales charge of 5.75% applicable to Class A shares, with all
dividends and distributions reinvested for the periods shown ended July 31, 2004
is calculated using the SEC-required uniform method to compute such return.
(4) Class B shares were first offered on December 30, 1999. Performance reflects
the deduction of a CDSC of 4% for 1 year and 3% for the life of the class.
(5) Class C shares were first offered on December 30, 1999. The 1% CDSC for
Class C shares normally applies before the first anniversary of the purchase
date. Performance is at net asset value.
(6) Class P shares were first offered on December 30, 1999. Performance is at
net asset value.
(7) Class Y shares were first offered on December 30, 1999. Performance is at
net asset value.
4
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EXPENSE EXAMPLE
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including sales charges on purchase payments (these charges vary among
the share classes); and (2) ongoing costs, including management fees;
distribution and service (12b-1) fees (these charges vary among the share
classes); and other Fund expenses. This Example is intended to help you
understand your ongoing costs (in dollars) of investing in the Fund and to
compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning
of the period and held for the entire period (February 1, 2004 through July 31,
2004).
ACTUAL EXPENSES
For each class of the Fund, the first line of the table on the following
page provides information about actual account values and actual expenses. You
may use the information in this line, together with the amount you invested, to
estimate the expenses that you paid over the period. Simply divide your account
value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6),
then multiply the result by the number in the first line under the heading
entitled "Expenses Paid During the Period 2/1/04 - 7/31/04" to estimate the
expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
For each class of the Fund, the second line of the table on the following
page provides information about hypothetical account values and hypothetical
expenses based on the Fund's actual expense ratio and an assumed rate of return
of 5% per year before expenses, which is not the Fund's actual return. The
hypothetical account values and expenses may not be used to estimate the actual
ending account balance or expenses you paid for the period. You may use this
information to compare the ongoing costs of investing in the Fund and other
funds. To do so, compare this 5% hypothetical example with the 5% hypothetical
examples that appear in the shareholder reports of the other funds.
5
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Please note that the expenses shown in the table are meant to highlight
your ongoing costs only and do not reflect any transactional costs, such as
sales charges. Therefore, the second line of the table is useful in comparing
ongoing costs only, and will not help you determine the relative total costs of
owning different funds. In addition, if these transactional costs were included,
your costs would have been higher.
<Table>
<Caption>
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT PAID DURING
VALUE VALUE THE PERIOD+
----- ----- -----------
2/1/04 -
2/1/04 7/31/04 7/31/04
------ ------- --------
CLASS A
Actual $ 1,000.00 $ 933.30 $ 9.34
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,015.20 $ 9.74
CLASS B
Actual $ 1,000.00 $ 929.50 $ 12.26
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,012.15 $ 12.79
CLASS C
Actual $ 1,000.00 $ 929.50 $ 12.26
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,012.15 $ 12.79
CLASS P
Actual $ 1,000.00 $ 933.70 $ 9.64
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,014.89 $ 10.04
CLASS Y
Actual $ 1,000.00 $ 934.80 $ 7.51
Hypothetical (5% Return Before Expenses) $ 1,000.00 $ 1,017.10 $ 7.83
</Table>
+ For each class of the Fund, expenses are equal to the annualized expense
ratio for such class (1.94% for Class A, 2.56% for Class B, 2.56% for Class
C, 2.01% for Class P and 1.56% for Class Y) multiplied by the average
account value over the period, multiplied by 182/366 (to reflect one-half
year period).
- --------------------------------------------------------------------------------
PORTFOLIO HOLDINGS PRESENTED BY SECTOR
JULY 31, 2004
<Table>
<Caption>
SECTOR %*
Auto & Transportation .43%
Consumer Discretionary 20.78%
Consumer Staples 7.35%
Financial Services 12.66%
Healthcare 22.92%
Integrated Oils .55%
Other 5.16%
Other Energy 1.74%
Producer Durables 1.92%
Technology 22.43%
Utilities 1.19%
Short-Term Investments 2.87%
Total 100.00%
</Table>
* Represents percent of total investments.
6
<Page>
SCHEDULE OF INVESTMENTS
JULY 31, 2004
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------------
COMMON STOCKS 98.76%
ADVERTISING AGENCY 0.37%
Omnicom Group, Inc. 6,000 $ 432
----------
BANKS: NEW YORK CITY 0.51%
JPMorgan Chase & Co. 16,000 597
----------
BANKS: OUTSIDE NEW YORK CITY 0.46%
Wachovia Corp. 12,100 536
----------
BEVERAGE: BREWERS 0.90%
Anheuser-Busch Cos., Inc. 20,096 1,043
----------
BEVERAGE: SOFT DRINKS 2.33%
PepsiCo, Inc. 33,000 1,650
The Coca-Cola Co. 24,300 1,066
----------
TOTAL 2,716
----------
BIOTECHNOLOGY RESEARCH & PRODUCTION 3.77%
Amgen, Inc.* 35,683 2,030
Biogen Idec, Inc.* 5,800 348
Genentech, Inc.* 23,200 1,129
Genzyme Corp.* 17,300 887
----------
TOTAL 4,394
----------
CASINOS & GAMBLING 0.35%
International Game
Technology 12,500 404
----------
COMMUNICATIONS & MEDIA 0.87%
Time Warner, Inc.* 61,000 1,016
----------
COMMUNICATIONS TECHNOLOGY 6.04%
Avaya, Inc.* 31,000 454
Cisco Systems, Inc.* 164,788 3,438
Juniper Networks, Inc.*^ 22,000 505
Motorola, Inc. 39,500 629
Nortel Networks Corp.*(a) 44,500 163
QUALCOMM, Inc. 26,700 1,844
----------
TOTAL 7,033
----------
COMPUTER SERVICES SOFTWARE &
SYSTEMS 6.15%
Microsoft Corp. 168,900 $ 4,807
Oracle Corp.* 104,539 1,099
Symantec Corp.* 15,000 701
Veritas Software Corp.* 29,100 555
----------
TOTAL 7,162
----------
COMPUTER TECHNOLOGY 4.36%
Dell, Inc.* 60,767 2,155
EMC Corp.* 105,400 1,156
International Business
Machines Corp. 20,255 1,764
----------
TOTAL 5,075
----------
CONSUMER ELECTRONICS 1.40%
Electronic Arts, Inc.* 18,470 926
Yahoo!, Inc.* 22,700 699
----------
TOTAL 1,625
----------
CONSUMER PRODUCTS 0.88%
Gillette Co. 26,300 1,025
----------
COSMETICS 0.52%
Avon Products, Inc. 2,000 86
Estee Lauder Cos., Inc. (The) 11,900 523
----------
TOTAL 609
----------
DIVERSIFIED FINANCIAL SERVICES 4.68%
Accenture Ltd. Class A*(a) 9,000 222
American Express Co. 37,200 1,869
Citigroup, Inc. 52,100 2,297
Morgan Stanley 21,531 1,062
----------
TOTAL 5,450
----------
DRUG & GROCERY STORE CHAINS 1.28%
Walgreen Co. 28,500 1,037
Whole Foods Market, Inc. 5,500 453
----------
TOTAL 1,490
----------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
JULY 31, 2004
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------------
DRUGS & PHARMACEUTICALS 13.34%
Abbott Laboratories 21,000 $ 826
Allergan, Inc. 9,000 681
Cardinal Health, Inc. 11,200 499
Eli Lilly & Co. 30,400 1,937
Forest Laboratories, Inc.* 17,200 865
Gilead Sciences, Inc.* 10,300 666
Johnson & Johnson 41,992 2,321
Pfizer, Inc. 155,200 4,960
Teva Pharmaceutical
Industries Ltd. ADR^ 45,200 1,338
Wyeth 41,020 1,452
----------
TOTAL 15,545
----------
EDUCATION SERVICES 0.20%
Apollo Group, Inc.
Class A* 2,800 234
----------
ELECTRONICS: MEDICAL SYSTEMS 0.97%
Medtronic, Inc. 22,850 1,135
----------
ELECTRONICS: SEMI-CONDUCTORS/
COMPONENTS 6.26%
Agere Systems, Inc.* 41,000 46
Analog Devices, Inc. 16,700 663
Broadcom Corp.* 19,500 690
Intel Corp. 142,549 3,475
Jabil Circuit, Inc.* 11,500 250
Linear Technology Corp. 15,000 587
PMC-Sierra, Inc.* 24,000 285
Texas Instruments, Inc. 61,000 1,301
----------
TOTAL 7,297
----------
ENTERTAINMENT 1.60%
Fox Entertainment
Group, Inc.* 9,500 257
The Walt Disney Co. 23,700 547
Viacom, Inc. Class B 31,550 1,060
----------
TOTAL 1,864
----------
FINANCE: SMALL LOAN 0.38%
SLM Corp. 11,800 $ 447
----------
FINANCIAL DATA PROCESSING SERVICES &
SYSTEMS 1.66%
Automatic Data
Processing, Inc. 18,100 760
First Data Corp. 26,400 1,178
----------
TOTAL 1,938
----------
FINANCIAL MISCELLANEOUS 2.05%
Federal National
Mortgage Assoc. 16,052 1,139
MBNA Corp. 50,600 1,249
----------
TOTAL 2,388
----------
HEALTHCARE FACILITIES 0.42%
Quest Diagnostics, Inc. 6,000 492
----------
HEALTHCARE MANAGEMENT SERVICES 2.09%
UnitedHealth Group, Inc. 34,128 2,147
WellPoint Health
Networks, Inc.* 2,900 293
----------
TOTAL 2,440
----------
HOMEBUILDING 0.31%
Lennar Corp. Class A 8,500 363
----------
HOTEL/MOTEL 0.40%
Carnival Corp. 10,000 466
----------
INSURANCE: MULTI-LINE 2.52%
American Int'l. Group, Inc. 41,470 2,930
----------
JEWELRY WATCHES & GEMSTONES 0.50%
Tiffany & Co. 16,200 579
----------
MACHINERY: OIL WELL EQUIPMENT &
SERVICES 1.58%
Schlumberger Ltd. 21,300 1,370
Weatherford Int'l., Ltd.* 10,000 468
----------
TOTAL 1,838
----------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
SCHEDULE OF INVESTMENTS (CONTINUED)
JULY 31, 2004
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------------
MEDICAL & DENTAL INSTRUMENTS &
SUPPLIES 2.69%
Boston Scientific Corp.* 26,064 $ 997
Guidant Corp. 9,300 515
St. Jude Medical, Inc.* 8,400 572
Zimmer Holdings, Inc.* 13,800 1,053
----------
TOTAL 3,137
----------
MISC. BUSINESS & CONSUMER
DISCRETIONARY 0.50%
Scripps Co. 5,700 584
----------
MULTI-SECTOR COMPANIES 5.25%
3M Co. 19,600 1,614
General Electric Co. 135,318 4,500
----------
TOTAL 6,114
----------
OFFICE FURNITURE & BUSINESS
EQUIPMENT 0.41%
Lexmark Int'l., Inc.* 5,400 478
----------
OFFSHORE DRILLING 0.20%
Transocean, Inc.* 8,000 227
----------
OIL: INTEGRATED INTERNATIONAL 0.56%
Exxon Mobil Corp. 14,000 648
----------
PRODUCTION TECHNOLOGY EQUIPMENT 0.89%
Applied Materials, Inc.* 45,548 773
KLA-Tencor Corp.* 6,300 260
----------
TOTAL 1,033
----------
RADIO & TV BROADCASTERS 0.50%
Clear Channel
Communications, Inc. 16,274 581
----------
RECREATIONAL VEHICLES & BOATS 0.43%
Harley-Davidson, Inc. 8,400 503
----------
RESTAURANTS 1.01%
Starbucks Corp.* 25,000 1,174
----------
RETAIL 8.14%
Amazon.com, Inc.* 11,000 $ 428
Best Buy Co., Inc. 12,352 595
Gap, Inc. (The) 30,000 681
Home Depot, Inc. (The) 34,475 1,163
Lowe's Cos., Inc. 25,700 1,252
Target Corp. 39,000 1,700
TJX Cos., Inc. (The) 40,000 939
Wal-Mart Stores, Inc. 51,504 2,730
----------
TOTAL 9,488
----------
SECURITIES BROKERAGE & SERVICES 0.61%
Lehman Brothers
Holdings, Inc. 10,184 714
----------
SERVICES: COMMERCIAL 2.56%
eBay, Inc.* 32,088 2,514
IAC/InterActiveCorp* 17,300 472
----------
TOTAL 2,986
----------
SHOES 0.61%
NIKE, Inc. Class B 9,700 705
----------
SOAPS & HOUSEHOLD CHEMICALS 2.97%
Colgate-Palmolive Co. 22,100 1,176
Procter & Gamble Co. (The) 43,800 2,284
----------
TOTAL 3,460
----------
TELECOMMUNICATIONS EQUIPMENT 0.34%
Nokia Oyj ADR 34,300 399
----------
TEXTILES APPAREL MANUFACTURERS 0.73%
Coach, Inc.* 19,800 847
----------
UTILITIES: CABLE TV & RADIO 0.57%
Comcast Corp.* 24,100 660
----------
UTILITIES: TELECOMMUNICATIONS 0.64%
Nextel
Communications, Inc.* 33,000 751
----------
TOTAL COMMON STOCKS
(cost $116,853,127) 115,052
==========
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
SCHEDULE OF INVESTMENTS (CONCLUDED)
JULY 31, 2004
<Table>
<Caption>
VALUE
INVESTMENTS SHARES (000)
- --------------------------------------------------------------------------------------
SHORT-TERM INVESTMENTS 2.92%
COLLATERAL FOR SECURITIES ON LOAN 1.22%
State Street Navigator Securities
Lending Prime
Portfolio, 1.28%(b) 1,418,125 $ 1,418
----------
<Caption>
PRINCIPAL
AMOUNT
(000)
----------
REPURCHASE AGREEMENT 1.70%
Repurchase Agreement
dated 7/30/2004,
1.20% due 8/2/2004
with State Street
Bank & Trust Co.
collateralized by
$2,045,000 of Federal
Home Loan Bank at
1.72% due 3/5/2018;
value: $2,029,663;
proceeds: $1,986,506 $ 1,986 1,986
----------
TOTAL SHORT-TERM INVESTMENTS
(cost $3,404,432) 3,404
==========
TOTAL INVESTMENTS IN SECURITIES 101.68%
(cost $120,257,559) 118,456
==========
LIABILITIES IN EXCESS OF
OTHER ASSETS (1.68%) (1,961)
----------
NET ASSETS 100.00% $ 116,495
==========
</Table>
* Non-income producing security.
^ Security (or a portion of security) on loan. See Note 5.
(a) Foreign security traded in U.S. dollars.
(b) Rate shown reflects 7 day yield as of July 31, 2004.
ADR American Depository Receipt.
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
STATEMENT OF ASSETS AND LIABILITIES
JULY 31, 2004
<Table>
ASSETS:
Investments in securities, at value (cost $120,257,559) $ 118,455,926
Receivables:
Interest and dividends 67,155
Investment securities sold 25,874
Capital shares sold 323,762
Prepaid expenses and other assets 21,590
- -----------------------------------------------------------------------------------
TOTAL ASSETS 118,894,307
- -----------------------------------------------------------------------------------
LIABILITIES:
Payable upon return of securities on loan 1,418,125
Payables:
Investment securities purchased 451,908
Capital shares reacquired 175,914
Management fee 77,537
12b-1 distribution fees 78,790
Fund administration 8,864
Trustees' fees 8,599
Accrued expenses and other liabilities 179,172
- -----------------------------------------------------------------------------------
TOTAL LIABILITIES 2,398,909
===================================================================================
NET ASSETS $ 116,495,398
===================================================================================
COMPOSITION OF NET ASSETS:
Paid-in capital $ 187,271,363
Accumulated net investment loss (8,599)
Accumulated net realized loss on investments (68,965,733)
Net unrealized depreciation on investments (1,801,633)
- -----------------------------------------------------------------------------------
NET ASSETS $ 116,495,398
===================================================================================
NET ASSETS BY CLASS:
Class A Shares $ 79,114,347
Class B Shares $ 20,731,147
Class C Shares $ 16,648,860
Class P Shares $ 526
Class Y Shares $ 518
OUTSTANDING SHARES BY CLASS (UNLIMITED NUMBER OF
AUTHORIZED SHARES OF BENEFICIAL INTEREST):
Class A Shares 17,129,215
Class B Shares 4,623,476
Class C Shares 3,715,418
Class P Shares 113
Class Y Shares 112.89
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE
(NET ASSETS DIVIDED BY OUTSTANDING SHARES):
Class A Shares-Net asset value $ 4.62
Class A Shares-Maximum offering price
(Net asset value plus sales charge of 5.75%) $ 4.90
Class B Shares-Net asset value $ 4.48
Class C Shares-Net asset value $ 4.48
Class P Shares-Net asset value $ 4.65
Class Y Shares-Net asset value $ 4.59
===================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2004
<Table>
INVESTMENT INCOME:
Dividends $ 1,000,747
Interest 17,619
Securities lending-net 3,706
Foreign withholding tax (2,638)
- --------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME 1,019,434
- --------------------------------------------------------------------------------------
EXPENSES:
Management fee 828,321
12b-1 distribution plan-Class A 292,879
12b-1 distribution plan-Class B 193,397
12b-1 distribution plan-Class C 143,515
12b-1 distribution plan-Class P 4
Shareholder servicing 622,305
Professional 46,289
Reports to shareholders 57,692
Fund administration 44,177
Custody 19,321
Trustees' fees 2,092
Registration 52,179
Other 8,730
- --------------------------------------------------------------------------------------
Gross expenses 2,310,901
Expense reductions (800)
- --------------------------------------------------------------------------------------
NET EXPENSES 2,310,101
- --------------------------------------------------------------------------------------
NET INVESTMENT LOSS (1,290,667)
======================================================================================
NET REALIZED AND UNREALIZED GAIN:
Net realized gain on investments 2,602,957
Net change in unrealized appreciation/depreciation on investments 2,006,834
======================================================================================
NET REALIZED AND UNREALIZED GAIN 4,609,791
======================================================================================
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,319,124
======================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
FOR THE YEAR ENDED FOR THE YEAR ENDED
INCREASE IN NET ASSETS JULY 31, 2004 JULY 31, 2003
OPERATIONS:
Net investment loss $ (1,290,667) $ (927,015)
Net realized gain (loss) on investments 2,602,957 (27,860,887)
Net change in unrealized appreciation/depreciation on
investments 2,006,834 36,548,923
- ------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 3,319,124 7,761,021
==================================================================================================================
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares 47,030,203 32,212,353
Cost of shares reacquired (25,034,632) (21,229,979)
- ------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
RESULTING FROM CAPITAL SHARE TRANSACTIONS 21,995,571 10,982,374
==================================================================================================================
NET INCREASE IN NET ASSETS 25,314,695 18,743,395
==================================================================================================================
NET ASSETS:
Beginning of year 91,180,703 72,437,308
- ------------------------------------------------------------------------------------------------------------------
END OF YEAR $ 116,495,398 $ 91,180,703
==================================================================================================================
ACCUMULATED NET INVESTMENT LOSS $ (8,599) $ (8,970)
==================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
FINANCIAL HIGHLIGHTS
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------- TO
2004 2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS A SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.41 $ 4.02 $ 6.33 $ 10.57 $ 10.00
========= ========= ========= ========= =========
Investment operations
Net investment loss(a) (.05) (.04) (.07) (.08) (.05)
Net realized and unrealized gain (loss) .26 .43 (2.24) (4.14) .62
--------- --------- --------- --------- ---------
Total from investment operations .21 .39 (2.31) (4.22) .57
--------- --------- --------- --------- ---------
Distributions to shareholders from:
Net realized gain - - - (.02) -
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.62 $ 4.41 $ 4.02 $ 6.33 $ 10.57
========= ========= ========= ========= =========
Total Return(b) 4.76% 9.70% (36.49)% (39.96)% 5.70%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions 1.90% 2.06% 2.02% 1.68% .82%(c)
Expenses, excluding waiver and
expense reductions 1.90% 2.06% 2.02% 1.69% 1.12%(c)
Net investment loss (.98)% (1.06)% (1.29)% (1.01)% (.44)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------- TO
SUPPLEMENTAL DATA: 2004 2003 2002 2001 7/31/2000
===================================================================================================================
Net assets, end of period (000) $ 79,114 $ 65,178 $ 56,665 $ 78,064 $ 83,703
Portfolio turnover rate 28.15% 47.02% 42.08% 36.53% 14.66%
===================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------- TO
2004 2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS B SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.31 $ 3.95 $ 6.26 $ 10.51 $ 10.00
========= ========= ========= ========= =========
Investment operations
Net investment loss(a) (.07) (.07) (.10) (.13) (.07)
Net realized and unrealized gain (loss) .24 .43 (2.21) (4.10) .58
--------- --------- --------- --------- ---------
Total from investment operations .17 .36 (2.31) (4.23) .51
--------- --------- --------- --------- ---------
Distributions to shareholders from:
Net realized gain - - - (.02) -
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.48 $ 4.31 $ 3.95 $ 6.26 $ 10.51
========= ========= ========= ========= =========
Total Return(b) 3.94% 9.11% (36.90)% (40.34)% 5.20%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions 2.52% 2.67% 2.63% 2.29% 1.07%(c)
Expenses, excluding waiver and
expense reductions 2.52% 2.67% 2.63% 2.30% 1.53%(c)
Net investment loss (1.60)% (1.67)% (1.92)% (1.64)% (.68)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------- TO
SUPPLEMENTAL DATA: 2004 2003 2002 2001 7/31/2000
===================================================================================================================
Net assets, end of period (000) $ 20,731 $ 15,452 $ 10,041 $ 11,522 $ 8,046
Portfolio turnover rate 28.15% 47.02% 42.08% 36.53% 14.66%
===================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------- TO
2004 2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS C SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.31 $ 3.95 $ 6.25 $ 10.51 $ 10.00
========= ========= ========= ========= =========
Investment operations
Net investment loss(a) (.08) (.07) (.10) (.13) (.07)
Net realized and unrealized gain (loss) .25 .43 (2.20) (4.11) .58
--------- --------- --------- --------- ---------
Total from investment operations .17 .36 (2.30) (4.24) .51
--------- --------- --------- --------- ---------
Distributions to shareholders from:
Net realized gain - - - (.02) -
--------- --------- --------- --------- ---------
NET ASSET VALUE, END OF PERIOD $ 4.48 $ 4.31 $ 3.95 $ 6.25 $ 10.51
========= ========= ========= ========= =========
Total Return(b) 3.94% 9.11% (36.80)% (40.44)% 5.20%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions 2.52% 2.67% 2.63% 2.34% 1.01%(c)
Expenses, excluding waiver and
expense reductions 2.52% 2.67% 2.63% 2.35% 1.53%(c)
Net investment loss (1.60)% (1.67)% (1.91)% (1.69)% (.61)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------- TO
SUPPLEMENTAL DATA: 2004 2003 2002 2001 7/31/2000
===================================================================================================================
Net assets, end of period (000) $ 16,648 $ 10,550 $ 5,731 $ 4,598 $ 2,066
Portfolio turnover rate 28.15% 47.02% 42.08% 36.53% 14.66%
===================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<Page>
FINANCIAL HIGHLIGHTS (CONTINUED)
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------------- TO
2004 2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS P SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.43 $ 4.03 $ 6.32 $ 10.53 $ 10.00
========= ========= ========= ========= =============
Investment operations
Net investment loss(a) (.04) (.03) (.05) (.07) (.05)
Net realized and unrealized gain (loss) .26 .43 (2.24) (4.12) .58
--------- --------- --------- --------- -------------
Total from investment operations .22 .40 (2.29) (4.19) .53
--------- --------- --------- --------- -------------
Distributions to shareholders from:
Net realized gain - - - (.02) -
--------- --------- --------- --------- -------------
NET ASSET VALUE, END OF PERIOD $ 4.65 $ 4.43 $ 4.03 $ 6.32 $ 10.53
========= ========= ========= ========= =============
Total Return(b) 4.97% 9.93% (36.23)% (39.83)% 5.30%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions 1.97%+ 2.12%+ 2.08% 1.74% .87%(c)
Expenses, excluding waiver and
expense reductions 1.97%+ 2.12%+ 2.08% 1.75% 1.19%(c)
Net investment loss (1.05)%+ (1.12)%+ (1.35)% (1.08)% (.43)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------------- TO
SUPPLEMENTAL DATA: 2004 2003 2002 2001 7/31/2000
======================================================================================================================
Net assets, end of period (000) $ 1 $ 1 $ -(e) $ 1 $ 1
Portfolio turnover rate 28.15% 47.02% 42.08% 36.53% 14.66%
======================================================================================================================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<Page>
FINANCIAL HIGHLIGHTS (CONCLUDED)
<Table>
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------------- TO
2004 2003 2002 2001 7/31/2000
PER SHARE OPERATING PERFORMANCE (CLASS Y SHARES)
NET ASSET VALUE, BEGINNING OF PERIOD $ 4.35 $ 4.00 $ 6.31 $ 10.54 $ 10.00
========= ========= ========= ========= =============
Investment operations
Net investment loss(a) (.01) (.07) (.08) (.08) (.01)
Net realized and unrealized gain (loss) .25 .42 (2.23) (4.13) .55
--------- --------- --------- --------- -------------
Total from investment operations .24 .35 (2.31) (4.21) .54
--------- --------- --------- --------- -------------
Distributions to shareholders from:
Net realized gain - - - (.02) -
--------- --------- --------- --------- -------------
NET ASSET VALUE, END OF PERIOD $ 4.59 $ 4.35 $ 4.00 $ 6.31 $ 10.54
========= ========= ========= ========= =============
Total Return(b) 5.52% 8.75% (36.61)% (39.98)% 5.40%(c)
RATIOS TO AVERAGE NET ASSETS
Expenses, including waiver and
expense reductions 1.52%+ 1.67%+ 1.63% 1.29% .59%(c)
Expenses, excluding waiver and
expense reductions 1.52%+ 1.67%+ 1.63% 1.30% .90%(c)
Net investment loss (.60)%+ (.67)%+ (.87)% (.58)% (.11)%(c)
<Caption>
YEAR ENDED 7/31 12/15/1999(d)
--------------------------------------------------- TO
SUPPLEMENTAL DATA: 2004 2003 2002 2001 7/31/2000
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000) $ 1 $ -(e) $ -(e) $ 1 $ 1
Portfolio turnover rate 28.15% 47.02% 42.08% 36.53% 14.66%
</Table>
+ The ratios have been determined on a Fund basis.
(a) Calculated using average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads and assumes the
reinvestment of all distributions.
(c) Not annualized.
(d) Commencement of investment operations on December 15, 1999; SEC effective
date and date shares first became available to the public is December 30,
1999.
(e) Amount represents less than $1,000.
SEE NOTES TO FINANCIAL STATEMENTS.
18
<Page>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Lord Abbett Large-Cap Growth Fund (the "Fund") is registered under the
Investment Company Act of 1940 (the "Act") as a diversified, open-end management
investment company. The Fund was organized as a Delaware Business Trust on
September 29, 1999. The Fund commenced operations on December 15, 1999, and the
Securities and Exchange Commission declared the Fund effective and each class of
shares became available to the public on December 30, 1999.
The Fund's investment objective is to seek long-term capital growth. The Fund
offers five classes of shares: Classes A, B, C, P and Y, each with different
expenses and dividends. A front-end sales charge is normally added to the Net
Asset Value ("NAV") for Class A shares. There is no front-end sales charge in
the case of the Class B, C, P and Y shares, although there may be a contingent
deferred sales charge ("CDSC") as follows: certain redemptions of Class A shares
made within 24 months following any purchases made without a sales charge; Class
B shares redeemed before the sixth anniversary of purchase; and Class C shares
redeemed before the first anniversary of purchase. Class B shares will convert
to Class A shares on the eighth anniversary of the original purchase of Class B
shares.
The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of increases and decreases in
net assets from operations during the reporting period. Actual results could
differ from those estimates.
2. SIGNIFICANT ACCOUNTING POLICIES
(a) INVESTMENT VALUATION-Securities traded on any recognized U.S. or non-U.S.
exchange or on NASDAQ, Inc. are valued at the last sale price or official
closing price on the exchange or system on which they are principally
traded. Unlisted equity securities are valued at the last quoted sale price
or, if no sale price is available, at the mean between the most recently
quoted bid and asked price. Securities for which market quotations are not
readily available are valued at fair value as determined by management and
approved in good faith by the Board of Trustees. Short-term securities with
60 days or less remaining to maturity are valued using the amortized cost
method, which approximates current market value.
(b) SECURITY TRANSACTIONS-Security transactions are recorded as of the date
that the securities are purchased or sold (trade date). Realized gains and
losses on sales of portfolio securities are calculated using the
identified-cost method. Realized and unrealized gains or losses are
allocated to each class of shares based upon the relative proportion of net
assets at the beginning of the day.
(c) INVESTMENT INCOME-Dividend income is recorded on the ex-dividend date.
Interest income is recorded on the accrual basis. Discounts are accreted
and premiums are amortized using the effective interest method. Investment
income is allocated to each class of shares based upon the relative
proportion of net assets at the beginning of the day.
(d) FEDERAL TAXES-It is the policy of the Fund to meet the requirements of
Subchapter M of the Internal Revenue Code applicable to regulated
investment companies and to distribute substantially all taxable income and
capital gains to its shareholders. Therefore, no federal income tax
provision is required.
19
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(e) EXPENSES-Expenses, excluding class specific expenses, are allocated to each
class of shares based upon the relative proportion of net assets at the
beginning of the day. Class A, B, C and P shares bear all expenses and fees
relating to their respective 12b-1 Distribution Plans.
(f) SECURITIES LENDING-The Fund may lend its securities to member banks of the
Federal Reserve System and to registered broker/dealers approved by the
Fund. The loans are collateralized at all times by cash and/or U.S.
Treasury securities in an amount at least equal to 102% of the market value
of the securities loaned (105% in the case of foreign securities loaned) as
determined at the close of business on the preceding business day. The
dividend and interest income earned on the securities loaned is accounted
for in the same manner as other dividend and interest income. Lending
portfolio securities could result in a loss or delay in recovering the
Fund's securities if the borrower defaults.
(g) REPURCHASE AGREEMENTS-The Fund may enter into repurchase agreements with
respect to securities. A repurchase agreement is a transaction in which the
Fund acquires a security and simultaneously commits to resell that security
to the seller (a bank or securities dealer) at an agreed-upon price on an
agreed-upon date. The Fund requires at all times that the repurchase
agreement be collateralized by cash, U.S. Government securities or U.S.
Government sponsored enterprise securities having a value equal to, or in
excess of, the value of the repurchase agreement. If the seller of the
agreement defaults on its obligation to repurchase the underlying
securities at a time when the value of these securities has declined, the
Fund may incur a loss upon disposition of the securities.
3. MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE
The Fund has a management agreement with Lord, Abbett & Co. LLC ("Lord Abbett")
pursuant to which Lord Abbett supplies the Fund with investment management
services and executive and other personnel, pays the remuneration of officers,
provides office space and pays for ordinary and necessary office and clerical
expenses relating to research and statistical work and supervision of the Fund's
investment portfolio. The management fee is based on average daily net assets at
an annual rate of .75%.
Lord Abbett provides certain administrative services to the Fund pursuant to an
Administrative Services Agreement at an annual rate of .04% of the Fund's
average daily net assets.
12b-1 DISTRIBUTION PLANS
The Fund has adopted a distribution plan with respect to one or more classes of
shares pursuant to Rule 12b-1 of the Act, which provides for the payment of
ongoing distribution and service fees to Lord Abbett Distributor LLC
("Distributor"), an affiliate of Lord Abbett. The fees are accrued daily at
annual rates based upon average daily net assets as follows:
<Table>
<Caption>
FEE CLASS A CLASS B CLASS C CLASS P
- -------------------------------------------------------------------
Service .25% .25% .25% .20%
Distribution .10%(1) .75% .75% .25%
</Table>
(1) In addition, the Fund pays a one-time distribution fee of up to 1% on
certain qualifying purchases, which is generally amortized over a two-year
period. The Fund collected $3,186 of CDSCs during the year.
Class Y does not have a distribution plan.
20
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
COMMISSIONS
Distributor received the following commissions on sales of Class A shares of the
Fund, after concessions were paid to authorized dealers, for the year ended July
31, 2004:
<Table>
<Caption>
DISTRIBUTOR DEALERS'
COMMISSIONS CONCESSIONS
- ------------------------------
$ 106,420 $ 582,632
</Table>
One Trustee and certain of the Fund's officers have an interest in Lord Abbett.
4. DISTRIBUTIONS AND CAPITAL LOSS CARRYFORWARD
Dividends from net investment income, if any, are declared and paid at least
annually. Taxable net realized gains from investment transactions, reduced by
capital loss carryforwards, if any, are declared and distributed to shareholders
at least annually. The capital loss carryforward amount is available to offset
future net capital gains. Dividends and distributions to shareholders are
recorded on the ex-dividend date. The amount of dividends and distributions from
net investment income and net realized capital gains are determined in
accordance with federal income tax regulations which may differ from accounting
principles generally accepted in the United States of America. These book/tax
differences are either considered temporary or permanent in nature. To the
extent these differences are permanent in nature, such amounts are reclassified
within the components of net assets based on their federal tax basis treatment;
temporary differences do not require reclassification. Dividends and
distributions which exceed net investment income and net realized capital gains
for tax purposes are reported as distributions of paid-in capital.
As of July 31, 2004, the Fund's components of accumulated earnings (losses) on a
tax-basis are as follows:
<Table>
Capital loss carryforwards* $ (64,731,515)
Temporary differences (8,599)
Unrealized losses - net (6,035,851)
- ----------------------------------------------------
Total accumulated losses - net $ (70,775,965)
====================================================
</Table>
* As of July 31, 2004, the capital loss carryforwards along with the related
expiration dates are as follows:
<Table>
<Caption>
2010 2011 2012 TOTAL
- ---------------------------------------------------------
$ 13,538,523 $ 47,696,550 $ 3,496,442 $ 64,731,515
</Table>
As of July 31, 2004, the Fund's aggregate unrealized security gains and losses
based on cost for U.S. Federal income tax purposes are as follows:
<Table>
Tax Cost $ 124,491,777
- -----------------------------------------------------
Gross unrealized gain 9,943,421
Gross unrealized loss (15,979,272)
- -----------------------------------------------------
Net unrealized security loss $ (6,035,851)
=====================================================
</Table>
The difference between book-basis and tax-basis unrealized gains (losses) is
primarily attributable to wash sales and other temporary tax adjustments.
21
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Permanent items identified during the year ended July 31, 2004, have been
reclassified among the components of net assets based on their tax basis
treatment as follows:
<Table>
<Caption>
ACCUMULATED NET PAID-IN
INVESTMENT LOSS CAPITAL
- -----------------------------------------
$ 1,291,038 $ (1,291,038)
</Table>
The permanent difference is primarily due to tax net investment losses.
5. PORTFOLIO SECURITIES TRANSACTIONS
As of July 31, 2004, the value of securities loaned for the Fund is $1,397,460.
These loans are collateralized by cash of $1,418,125, which is invested in a
restricted money market account. In connection with the securities lending
program, State Street Bank and Trust Company ("SSB") received fees of $1,588 for
the year ended July 31, 2004, which are netted against securities lending income
on the Statement of Operations.
Purchases and sales of investment securities (other than short-term investments)
for the year ended July 31, 2004 are as follows:
<Table>
<Caption>
PURCHASES SALES
- --------------------------------
$ 50,758,806 $ 30,516,646
</Table>
There were no purchases or sales of U.S. Government securities for the year
ended July 31, 2004.
6. TRUSTEES' REMUNERATION
The Fund's officers and the one Trustee who are associated with Lord Abbett do
not receive any compensation from the Fund for serving in such capacities.
Outside Trustees' fees are allocated among all Lord Abbett-sponsored funds based
on the net assets of each fund. There is an equity based plan available to all
outside Trustees under which outside Trustees must defer receipt of a portion
of, and may elect to defer receipt of an additional portion of Trustees' fees.
The deferred amounts are treated as though equivalent dollar amounts have been
invested proportionately in the funds. Such amounts and earnings accrued thereon
are included in Trustees' fees on the Statement of Operations and in Trustees'
fees payable on the Statement of Assets and Liabilities and are not deductible
for U.S. federal income tax purposes until such amounts are paid.
7. EXPENSE REDUCTIONS
The Fund has entered into arrangements with its transfer agent and custodian
whereby credits realized as a result of uninvested cash balances are used to
reduce a portion of the Fund's expenses.
8. LINE OF CREDIT
The Fund, along with certain other funds managed by Lord Abbett, has available a
$200,000,000 unsecured revolving credit facility ("Facility") from a consortium
of banks, to be used for temporary or emergency purposes as an additional source
of liquidity to fund redemptions of investor shares. Any borrowings under this
Facility will bear interest at current market rates as defined in the agreement.
22
<Page>
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
The fee for this Facility is at an annual rate of .09%. At July 31, 2004, there
are no loans outstanding pursuant to this Facility nor was the Facility utilized
at any time during the year.
9. CUSTODIAN AND ACCOUNTING AGENT
SSB is the Fund's custodian and accounting agent. SSB performs custodian,
accounting and recordkeeping functions, relating to portfolio transactions and
calculating the Fund's NAV.
10. INVESTMENT RISKS
The Fund is subject to the general risks and considerations associated with
equity investing as well as the particular risks associated with growth stocks.
The value of an investment will fluctuate in response to movements in the stock
market in general, and to the changing prospects of individual companies in
which the Fund invests. Different types of stocks shift in and out of favor
depending on market and economic conditions. Growth stocks tend to be more
volatile than other stocks. In addition, if the Fund's assessment of a company's
potential for growth or market conditions is wrong, it could suffer losses or
produce poor performance relative to other funds, even in a rising market. These
factors can affect Fund performance.
11. SUMMARY OF CAPITAL TRANSACTIONS
Transactions in shares of benefical interest are as follows:
<Table>
<Caption>
YEAR ENDED YEAR ENDED
JULY 31, 2004 JULY 31, 2003
- ------------------------------------------------------------------------------------------------
SHARES AMOUNT SHARES AMOUNT
CLASS A SHARES
Shares sold 6,061,108 $ 28,902,236 4,734,716 $ 18,975,565
Shares reacquired (3,704,968) (17,598,096) (4,060,644) (16,055,071)
- ------------------------------------------------------------------------------------------------
Increase 2,356,140 $ 11,304,140 674,072 $ 2,920,494
- ------------------------------------------------------------------------------------------------
CLASS B SHARES
Shares sold 1,919,654 $ 8,924,524 1,910,525 $ 7,468,325
Shares reacquired (880,643) (4,112,074) (867,222) (3,347,856)
- ------------------------------------------------------------------------------------------------
Increase 1,039,011 $ 4,812,450 1,043,303 $ 4,120,469
- ------------------------------------------------------------------------------------------------
CLASS C SHARES
Shares sold 1,981,210 $ 9,203,443 1,472,944 $ 5,768,463
Shares reacquired (714,804) (3,324,462) (475,199) (1,827,052)
- ------------------------------------------------------------------------------------------------
Increase 1,266,406 $ 5,878,981 997,745 $ 3,941,411
- ------------------------------------------------------------------------------------------------
CLASS P SHARES
Shares reacquired - $ - (.01) $ (0.04)
- ------------------------------------------------------------------------------------------------
Decrease - $ - (.01) $ (0.04)
- ------------------------------------------------------------------------------------------------
</Table>
There were no capital transactions for Class Y shares during the periods shown.
12. SUBSEQUENT EVENT
Effective October 1, 2004, Distributor will pay the one-time distribution fee of
up to 1% on certain qualifying purchases of Class A shares of the Fund. Such
payments are currently made by the Fund. The Fund will continue to amortize the
prepaid distribution fee balance outstanding at September 30, 2004, which is
generally amortized over a two-year period.
23
<Page>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
THE BOARD OF TRUSTEES AND SHAREHOLDERS,
LORD ABBETT LARGE-CAP GROWTH FUND:
We have audited the accompanying statement of assets and liabilities, including
the schedule of investments, of Lord Abbett Large-Cap Growth Fund (the "Fund"),
as of July 31, 2004, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period then ended, and the financial highlights for each of the periods
presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 2004 by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other
auditing procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of Lord
Abbett Large-Cap Growth Fund as of July 31, 2004, the results of its operations
for the year then ended, the changes in its net assets for each of the two years
in the period then ended, and the financial highlights for each of the periods
presented, in conformity with accounting principles generally accepted in the
United States of America.
/s/ Deloitte & Touche LLP
New York, New York
September 24, 2004
24
<Page>
BASIC INFORMATION ABOUT MANAGEMENT
The Board of Trustees (the "Board") is responsible for the management of the
business and affairs of the Fund in accordance with the laws of the State of
Delaware. The Board appoints officers who are responsible for the day-to-day
operations of the Fund and who execute policies authorized by the Board. The
Board also approves an investment adviser to the Fund and continues to monitor
the cost and quality of the services provided by the investment adviser, and
annually considers whether to renew the contract with the adviser. Generally,
each Trustee holds office until his/her successor is elected and qualified or
until his/her earlier resignation or removal, as provided in the Fund's
organizational documents.
Lord, Abbett & Co. LLC ("Lord Abbett"), a Delaware limited liability company, is
the Fund's investment adviser.
INTERESTED TRUSTEE
The following Trustee is the Managing Partner of Lord Abbett and is an
"interested person" as defined in the Act. Mr. Dow is also an officer, director,
or trustee of each of the fourteen Lord Abbett-sponsored funds, which consist of
49 portfolios or series.
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH FUND DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
ROBERT S. DOW Trustee and Chairman since Managing Partner and Chief N/A
Lord, Abbett & Co. LLC 1999 Investment Officer of Lord Abbett
90 Hudson Street since 1996.
Jersey City, NJ
Date of Birth: 3/8/1945
</Table>
----------
INDEPENDENT TRUSTEES
The following independent or outside Trustees are also directors or trustees of
each of the fourteen Lord Abbett-sponsored funds, which consist of 49 portfolios
or series.
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH FUND DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
E. THAYER BIGELOW Trustee since 1999 Managing General Partner, Bigelow Currently serves as
Bigelow Media, LLC Media, LLC (since 2000); Senior director of Adelphia
41 Madison Ave., Adviser, Time Warner Inc. (1998 - Communications, Inc.,
Suite 3810 2000); Acting Chief Executive Crane Co., and Huttig
New York, NY Officer of Courtroom Television Building Products Inc.
Date of Birth: 10/22/1941 Network (1997 - 1998); President
and Chief Executive Officer of
Time Warner Cable Programming,
Inc. (1991 - 1997).
WILLIAM H.T. BUSH Trustee since 1999 Co-founder and Chairman of the Currently serves as
Bush-O'Donnell & Co., Inc. Board of the financial advisory director of Wellpoint
101 South Hanley Road firm of Bush-O'Donnell & Company Health Networks, Inc., DT
Suite 1250 (since 1986). Industries Inc., and
St. Louis, MO Engineered Support
Date of Birth: 7/14/1938 Systems, Inc.
</Table>
25
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONTINUED)
<Table>
<Caption>
CURRENT POSITION
NAME, ADDRESS AND LENGTH OF SERVICE PRINCIPAL OCCUPATION OTHER
DATE OF BIRTH WITH FUND DURING PAST FIVE YEARS DIRECTORSHIPS
- --------------------------------------------------------------------------------------------------------------------------
ROBERT B. CALHOUN, JR. Trustee since 1999 Managing Director of Monitor Currently serves as
Monitor Clipper Partners Clipper Partners (since 1997) and director of Avondale,
650 Madison Ave., 9th Fl. President of Clipper Asset Inc. and Interstate
New York, NY Management Corp. (since 1991), Bakeries Corp.
Date of Birth: 10/25/1942 both private equity investment
funds.
JULIE A. HILL Trustee since 2004 Owner and CEO of the Hillsdale Currently serves as
20 Via Diamante Companies, a business consulting director of Wellpoint
Newport Coast, CA firm (1997 - present); Founder, Health Networks Inc.;
Date of Birth: 7/16/1946 President and Owner of the Resources Connection
Hiram-Hill and Hillsdale Inc.; Holcim (US) Inc.
Development Companies from 1998 (parent company Holcim
to 2001. Ltd).
FRANKLIN W. HOBBS Trustee since 2000 Senior Advisor (since April 2003) Currently serves as
Houlihan Lokey and Former Chief Executive director of Adolph Coors
Howard & Zukin Officer of Houlihan Lokey Howard Company.
685 Third Ave. & Zukin, an investment bank
New York, NY (January 2002 - April 2003);
Date of Birth: 7/30/1947 Chairman of Warburg Dillon Read
(1999 - 2001); Global Head of
Corporate Finance of SBC Warburg
Dillon Read (1997 - 1999); Chief
Executive Officer of Dillon, Read
& Co. (1994 - 1997).
C. ALAN MACDONALD Trustee since 1999 Retired - General Business and Currently serves as
415 Round Hill Road Governance Consulting (since director of Lincoln
Greenwich, CT 1992); formerly President and CEO Snacks, and H.J. Baker.
Date of Birth: 5/19/1933 of Nestle Foods.
THOMAS J. NEFF Trustee since 1999 Chairman of Spencer Stuart, an Currently serves as
Spencer Stuart executive search consulting firm director of Ace, Ltd. and
277 Park Avenue (since 1996); President of Exult, Inc.
New York, NY Spencer Stuart (1979 - 1996).
Date of Birth: 10/2/1937
</Table>
-----------
OFFICERS
None of the officers listed below have received compensation from the Fund. All
the officers of the Fund may also be officers of the other Lord Abbett-sponsored
funds and maintain offices at 90 Hudson Street, Jersey City, NJ 07302.
<Table>
<Caption>
NAME AND CURRENT POSITION LENGTH OF SERVICE PRINCIPAL OCCUPATION
(DATE OF BIRTH) WITH FUND OF CURRENT POSITION DURING PAST FIVE YEARS
- -------------------------------------------------------------------------------------------------------------------------
ROBERT S. DOW Chief Executive Officer Elected in 1999 Managing Partner and
(3/8/1945) and President Chief Investment Officer
of Lord Abbett since 1996.
ROBERT G. MORRIS Executive Vice President Elected in 1999 Partner and Director of
(11/6/1944) Equity Investments,
joined Lord Abbett in
1991.
</Table>
26
<Page>
BASIC INFORMATION ABOUT MANAGEMENT (CONCLUDED)
<Table>
<Caption>
NAME AND CURRENT POSITION LENGTH OF SERVICE PRINCIPAL OCCUPATION
(DATE OF BIRTH) WITH FUND OF CURRENT POSITION DURING PAST FIVE YEARS
- -------------------------------------------------------------------------------------------------------------------------
TRACIE E. AHERN Vice President Elected in 1999 Partner and Director of
(1/12/1968) Portfolio Accounting and
Operations, joined Lord
Abbett in 1999, prior
thereto Vice President -
Head of Fund
Administration of Morgan
Grenfell.
JAMES W. BERNAICHE Chief Compliance Officer Elected in 2004 Chief Compliance Officer,
(7/28/1956) joined Lord Abbett in
2001, prior thereto Vice
President and Chief
Compliance Officer of
Credit Suisse Asset
Management, LLC.
JOAN A. BINSTOCK Chief Financial Officer Elected in 1999 Partner and Chief
(3/4/1954) and Vice President Operations Officer,
joined Lord Abbett in
1999, prior thereto Chief
Operating Officer of
Morgan Grenfell.
DANIEL E. CARPER Vice President Elected in 1999 Partner, joined Lord
(1/22/1952) Abbett in 1979.
PAUL A. HILSTAD Vice President and Elected in 1999 Partner and General
(12/13/1942) Secretary Counsel, joined Lord
Abbett in 1995.
LAWRENCE H. KAPLAN Vice President and Elected in 1999 Partner and Deputy General
(1/16/1957) Assistant Secretary Counsel, joined Lord
Abbett in 1997.
A. EDWARD OBERHAUS, III Vice President Elected in 1999 Partner and Manager of
(12/21/1959) Equity Trading, joined
Lord Abbett in 1983.
CHRISTINA T. SIMMONS Vice President and Elected in 2000 Assistant General
(11/12/1957) Assistant Secretary Counsel, joined Lord
Abbett in 1999, formerly
Assistant General Counsel
of Prudential Investments
from 1998 to 1999, prior
thereto Counsel of
Drinker, Biddle & Reath
LLP, a law firm.
ROSELIA ST. LOUIS Executive Vice President Elected in 2000 Investment Manager,
(1/1/1967) joined Lord Abbett in
2000, prior thereto
Assistant Portfolio
Manager of United Church
Pension Boards.
BERNARD J. GRZELAK Treasurer Elected in 2003 Director of Fund
(6/12/1971) Administration, joined
Lord Abbett in 2003,
formerly Vice President,
Lazard Asset Management
LLC from 2000 to 2003,
prior thereto Manager of
Deloitte & Touche LLP.
</Table>
Please call 888-522-2388 for a copy of the Statement of Additional Information
(SAI), which contains further information about the Fund's Trustees. It is
available free upon request.
27
<Page>
HOUSEHOLDING
The Fund has adopted a policy that allows it to send only one copy of the Fund's
Prospectus, proxy material, annual report and semi-annual report to certain
shareholders residing at the same "household." This reduces Fund expenses, which
benefits you and other shareholders. If you need additional copies or do not
want your mailings to be "householded," please call Lord Abbett at 800-821-5129
or send a written request with your name, the name of your fund or funds and
your account number or numbers to Lord Abbett Family of Funds, P.O. Box 219336,
Kansas City, MO 64121.
PROXY VOTING POLICIES, PROCEDURES AND RECORD
A description of the policies and procedures that Lord Abbett uses to vote
proxies related to the Fund's portfolio securities, and information as to how
Lord Abbett voted the Fund's proxies during the 12-month period ended June 30,
2004, are available without charge, upon request, (i) by calling 888-522-2388;
(ii) on Lord Abbett's web site at www.LordAbbett.com; and (iii) on the
Securities and Exchange Commission's ("SEC") website at www.sec.gov.
SHAREHOLDER REPORTS AND QUARTERLY PORTFOLIO DISCLOSURE
The Fund will be required to file its complete schedule of portfolio holdings
with the SEC for its first and third fiscal quarters on Form N-Q for fiscal
quarters ending on or after July 9, 2004. Once filed, the Fund's Form N-Q will
be available without charge, upon request on the SEC's website at www.sec.gov
and may be available by calling Lord Abbett at 800-821-5129. You can also obtain
copies of Form N-Q by (i) visiting the SEC's Public Reference Room in
Washington, DC (information on the operation of the Public Reference Room may be
obtained by calling 800-SEC-0330); (ii) sending your request and duplicating fee
to the SEC's Public Reference Room, Washington, DC 20549-0102; or (iii) sending
your request electronically to publicinfo@sec.gov.
28
<Page>
This page is intentionally left blank.
<Page>
<Table>
<Caption>
[LORD ABBETT(R) LOGO]
This report when not used for the general
information of shareholders of the Fund, is to
be distributed only if preceded or accompanied
by a current Fund Prospectus.
Lord Abbett Large-Cap Growth Fund
Lord Abbett Mutual Fund shares are distributed by:
LORD ABBETT DISTRIBUTOR LLC LALCG-2-704
90 Hudson Street - Jersey City, New Jersey 07302-3973 (9/04)
</Table>
<Page>
ITEM 2: CODE OF ETHICS.
(a) In accordance with applicable requirements, the Registrant adopted a
Sarbanes-Oxley Code of Ethics on June 19, 2003 that applies to the
principal executive officer and senior financial officers of the
Registrant ("Code of Ethics"). The Code of Ethics was in effect
during the fiscal year ended July 31, 2004 (the "Period").
(b) Not applicable.
(c) The Registrant has not amended the Code of Ethics as described in
Form N-CSR during the Period.
(d) The Registrant has not granted any waiver, including an implicit
waiver, from a provision of the Code of Ethics as described in Form
N-CSR during the Period.
(e) Not applicable.
(f) See Item 11(a) concerning the filing of the Code of Ethics. The
Registrant will provide a copy of the Code of Ethics to any person
without charge, upon request. To obtain a copy, please call Lord
Abbett at 800-821-5129.
ITEM 3: AUDIT COMMITTEE FINANCIAL EXPERT.
The Registrant's Board of Trustees has determined that each of the
following independent Trustees who are members of the audit
committee are audit committee financial experts: E. Thayer Bigelow,
Robert B. Calhoun and Franklin W. Hobbs. Each of these persons is
independent within the meaning of the Form N-CSR.
ITEM 4: PRINCIPAL ACCOUNTANT FEES AND SERVICES.
In response to sections (a), (b), (c) and (d) of Item 4, the aggregate fees
billed to the Registrant for the fiscal years ended July 31, 2004 and 2003 by
the Registrant's principal accounting firm, Deloitte & Touche LLP, the member
firms of Deloitte Touche Tohmatsu and their respective affiliates (collectively,
"Deloitte") were as follows:
<Table>
<Caption>
FISCAL YEAR ENDED:
2004 2003
Audit Fees {a} $ 34,000 $ 30,000
Audit-Related Fees {b} 20 24
--------------------------
</Table>
<Page>
<Table>
Total audit and audit-related fees 34,020 30,024
--------------------------
Tax Fees {c} 6,576 6,571
All Other Fees {d} 31 -
--------------------------
Total Fees $ 40,627 $ 36,595
--------------------------
</Table>
- ----------
{a} Consists of fees for audits of the Registrant's annual financial
statements.
{b} Consists of the Registrant's proportionate share of fees for performing
certain agreed-upon procedures regarding compliance with the provisions of
Rule 17a-7 of the Investment Company Act of 1940 and related Board approved
procedures.
{c} Fees for the fiscal year ended July 31, 2004 consist of fees for
preparing the U.S. Income Tax Return for Regulated Investment Companies,
New Jersey Corporation Business Tax Return, New Jersey Annual Report Form,
U.S. Return of Excise Tax on Undistributed Income of Investment Companies,
IRS Forms 1099-MISC and 1096 Annual Summary and Transmittal of U.S.
Information Returns.
Fees for the fiscal year ended July 31, 2003 consist of fees for preparing
the U.S. Income Tax Return for Regulated Investment Companies, New Jersey
Corporation Business Tax Return, New Jersey Annual Report Form, U.S. Return
of Excise Tax on Undistributed Income of Investment Companies.
{d} Consists of the Registrant's proportionate share of fees for testing of
Anti-Money Laundering Compliance.
(e) (1) Pursuant to Rule 2-01(c) (7) of Regulation S-X, the Registrant's Audit
Committee has adopted pre-approval policies and procedures. Such policies and
procedures generally provide that the Audit Committee must pre-approve:
- any audit, audit-related, tax, and other services to be provided
to the Lord Abbett Funds, including the Registrant, and
- any audit-related, tax, and other services to be provided to the
Registrant's investment adviser and any entity controlling,
controlled by or under common control with the investment adviser
that provides ongoing services to one or more Funds comprising
the Registrant if the engagement relates directly to operations
and financial reporting of a Fund,
by the independent auditor to assure that the provision of such services does
not impair the auditor's independence.
<Page>
The Audit Committee has delegated pre-approval authority to its Chairman,
subject to a fee limit of $10,000 per event, and not to exceed $25,000 annually.
The Chairman will report any pre-approval decisions to the Audit Committee at
its next scheduled meeting. Unless a type of service to be provided by the
independent auditor has received general pre-approval, it must be pre-approved
by the Audit Committee. Any proposed services exceeding pre-approved cost levels
will require specific pre-approval by the Audit Committee.
(e) (2) The Registrant's Audit Committee has approved 100% of the services
described in this Item 4 (b) through (d).
(f) Not applicable.
(g) The aggregate non-audit fees billed by Deloitte for services rendered to the
Registrant are shown above in the response to Item 4 (a), (b), (c) and (d) as
"All Other Fees".
The aggregate non-audit fees billed by Deloitte for services rendered to the
Registrant's investment adviser, Lord, Abbett & Co. LLC ("Lord Abbett"), for the
fiscal years ended July 31, 2004 and 2003 were:
<Table>
<Caption>
FISCAL YEAR ENDED:
2004 2003
All Other Fees {a} $ 81,900 $ 77,000
</Table>
- --------
{a} Fees for the fiscal year ended July 31, 2004 consist of fees of $81,900
for Independent Services Auditors' Report on Controls Placed in Operation
and Tests of Operating Effectiveness related to Lord Abbett's operations
and general computer controls over equity securities processing for
institutional and mutual fund accounts ("SAS 70 Report").
Fees for the fiscal year ended July 31, 2003 consist of fees of $2,000 for
testing of Business Continuity Planning and $75,000 for the SAS 70 Report.
The aggregate non-audit fees billed by Deloitte for services rendered to
entities under the common control of Lord Abbett (i.e., Lord Abbett Distributor
LLC, the Registrant's principal underwriter) for the fiscal years ended July 31,
2004 and 2003 were:
<Table>
<Caption>
FISCAL YEAR ENDED:
2004 2003
All Other Fees {b} $ 11,378 -0-
</Table>
<Page>
- --------
{b} Fees for the fiscal year ended July 31, 2004 represent fees for testing
of Anti-Money Laundering Compliance.
(h) The Registrant's Audit Committee has considered the provision of non-audit
services that were rendered to the Registrant's investment adviser, and any
entity controlling, controlled by or under common control with the investment
adviser that provides ongoing services to the Registrant, that were not
pre-approved pursuant to Rule 2-01 (c)(7)(ii) of Regulation S-X and has
determined that the provision of such services is compatible with maintaining
Deloitte's independence.
ITEM 5: AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6: SCHEDULE OF INVESTMENTS.
Not applicable.
ITEM 7: DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM8: PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable.
ITEM 9: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not Applicable.
ITEM 10: CONTROLS AND PROCEDURES.
(a) Based on their evaluation of the Registrant's disclosure controls
and procedures (as defined in Rule 30a-3(c) under the Investment
Company Act of 1940) as of September 24, 2004, the Chief Executive
Officer and Chief Financial Officer of the Registrant have
concluded that such disclosure controls and procedures are
reasonably designed and effective to ensure that material
information relating to the Registrant, including its consolidated
subsidiaries, is made known to them by others within those
entities.
(b) There were no significant changes in the Registrant's internal
controls over financial reporting (as defined in Rule 30a-3(d) under
the Investment Company Act of 1940) that occurred during the
Registrant's last fiscal half-year that have materially affected, or
are reasonably likely to materially affect, the Registrant's
internal control over financial reporting.
ITEM 11: EXHIBITS.
(a)(1) Amendments to Code of Ethics - Not applicable.
<Page>
(a)(2) Certification of each principal executive officer and principal
financial officer of the Registrant as required by Rule 30a-2
under the Act (17 CFR 270.30a-2) is attached hereto as a part of
EX-99.CERT.
(a)(3) Certification of each principal executive officer and principal
financial officer of the Registrant as required by Section 906 of
the Sarbanes-Oxley Act of 2002 is attached hereto as a part of
EX-99.906CERT.
<Page>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investment Company Act of 1940, the Registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
LORD ABBETT LARGE-CAP GROWTH
FUND
/s/Robert S. Dow
----------------
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/Joan A. Binstock
-------------------
Joan A. Binstock
Chief Financial Officer and Vice President
Date: September 24, 2004
<Page>
Pursuant to the requirements of the Securities and Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the Registrant and in the capacities and on the
dates indicated.
LORD ABBETT LARGE-CAP GROWTH
FUND
/s/Robert S. Dow
----------------
Robert S. Dow
Chief Executive Officer,
Chairman and President
/s/Joan A. Binstock
-------------------
Joan A. Binstock
Chief Financial Officer and Vice President
Date: September 24, 2004